Microsoft buys Yammer for $1.2 billion

Yammer is a social networking website that Microsoft decided to purchase. Microsoft confirmed that it bought Yammer for $1.2 billion.

Yammer is just four years old and already has around five million users. Yammer operates kind of like Facebook for communications within businesses.

According to BBC, there has been reports going around that the two companies were talking about a deal. However it was only on Monday that Microsoft confirmed the plan.

According to The Australian, Microsoft's latest acquistion represents Microsoft's attempt to adapt to the technology industry's major shift. The shift that is being referred to is the shift that is demanding more social-networking tools and internet-connected services.

According to San Francisco Chronicle, Microsoft bought Skype, in a bid to remain relevant. Microsoft ended up buying Skype for $8.5 billion last year. Microsoft also released their very own tablet last week.

Yammer creates social networks that are private. The social networks allow companies to keep tabs on their employees and on what colleagues are working on.